SHANGHAI – Johnson Controls and Yanfeng Automotive Trim Systems Co. have signed an agreement for a global automotive interiors joint venture (JV).
The new JV will be called Yanfeng Automotive Interiors, and will be the largest automotive interiors company in the world with revenues of approximately $8.5 billion, according to the two companies. The JV will have a backlog of business that will $10 billion in the next few years. Yanfeng will hold the majority 70 percent share in the joint venture, and Johnson Controls will have 30 percent.
The companies signed a definitive agreement in May 2014 to form this joint venture, which is expected to begin operations in July 2015, subject to receipt of all regulatory approvals.
“Combining our global interiors businesses enhances our ability to serve our automotive customers throughout the world,” said Alex Molinaroli, Johnson Controls chairman and CEO. “This will result in an automotive interiors company with unmatched scale, capabilities and reach.
The new company will be headquartered in Shanghai with more than 90 manufacturing, global engineering, development and customer centers in the United States, Europe, China, Japan and India. The product portfolio will include instrument panels and cockpit systems, door panels, floor consoles and overhead consoles.
The interiors joint venture agreement is the latest in a series of recent strategic transactions taken by the company to both strengthen and rebalance its portfolio of operating businesses.
